HINDU (Business Line)
Southern Online plans to acquire biotech co
, March 23
SOUTHERN Online Services Ltd (SOSL), the city-based
software and Internet service provider, plans to acquire the
complete holding of a biotechnology company called Southern
Biofe Bio Fuels (SBBF) for consideration other than cash.
According to sources close to the deal, SOSL
entered into an "agreement of sale of shares" with
the shareholders of SBBF in the second week of February second
week for acquiring its 3,43,097 equity shares of Rs 10 each.
"The move is aimed at enabling SOSL to
implement its plans to diversify into other areas of activities
such as biotechnology, biodiesel and biofuel (alternative fuel)
manufacturing. Towards this, SOSL has identified SBBF, which
has already carried out extensive research and market survey
in the field of manufacturing of biofuels such as bio-diesel.
SBBF is possessing valuable expertise and information of technical
and marketing aspects," the sources said.
The German Technical Cooperation (GTZ), which
promotes alternate energy sources, has appointed a consultant
to carry out the financial and socio-economical appraisal of
the SBBF project, they said.
Having entered into an agreement of sale of
shares with the shareholders of SBBF for acquiring the entire
holding, the SOSL board now proposes to allot its 3,43,097 equity
shares in favour of the SBBF shareholders on a preferential
Further, to meet the cost of the proposed biotechnology
project, the SOSL board has also decided to issue and allot
62,96,603 equity shares of Rs 10 each aggregating Rs 6.29 crore
with or without premium to the public or other persons/bodies
as may be decided at a later stage.
view of the change in business, the SOSL board has decided to
change the name of the company as Southern Online Bio Technologies
Ltd. The Registrar of Companies (RoC) at Hyderabad has confirmed
that the new name is available for registration, the sources